> For the complete documentation index, see [llms.txt](https://daofair.gitbook.io/doc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://daofair.gitbook.io/doc/why-daofair.md). # Why DAOFAIR **Why DAOFAIR** * The Proactive Market Making (PMM) algorithm was developed entirely in-house and is an elegant, on-chain generalization of orderbook trading. It is adapted and optimized for operations on the blockchain and has proven itself to be highly performant and capital-efficient (as its high volume/TVL ratio can attest) with many innovative, flexible use cases in market making. * DAOFAIR provides the ability to issue new assets at the lowest cost and create highly liquid capital pools through Crowdpooling. There are no restrictions on the initial price nor the ratio of funds and tokens supplied. * DAOFAIR supports efficient on-chain professional market making. Any project owner, market maker, or retail investor can comprehensively control and execute their market making strategies in an efficient, flexible manner, by adjusting parameters such as market mid-price, liquidity depth, and spread. This liquidity on DAOFAIR can also be shared and is composable with other on-chain smart contracts. * DAOFAIR is both a DEX and an aggregator; It has its own liquidity pools and also supports trading between any two tokens available on the market * The DAOFAIR token economics model introduces a membership system and a fee sharing mechanism. In addition to its governance functions, DAOFAIR gives holders trading fee discounts and IDO participation allocations. The system’s vDAOFAIR proof-of-membership tokens entitle holders to trading fee dividends and membership rewards, as well as the DAOFAIR holder benefits. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://daofair.gitbook.io/doc/why-daofair.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.